Debt ceiling fears fade from Treasury bills after Congress leaders strikes budget pact

Yields for short-dated Treasury bills due in early March fell from their elevated levels on Wednesday after Senate leaders said they struck a two-year budget deal that would lift the debt ceiling. The bill most be voted on in Congress. The yield for the one-month bill maturing in March. 08 slipped around 11 basis points to 1.352%. Before the agreement, investors had avoided bills set to mature in early March, pushing its yields higher above later maturities, when the Treasury Department was expected to exhaust accounting maneuvers. Bond yields move inversely to prices. As a result, the yield spread between government paper maturing in March and April has been negative in the past few weeks, producing an unusual kink in the so-called yield curve, which traces a bond's maturities against its yield.

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